2024 AGI is 161,047, I paid more than 6,000 child care expenses for 2 dependents. I would expect the tax credit to be 6,000X20%=1,200, however, TurboTax calculates $835.

You are correct in assuming that the maximum credit for you could be $1,200. There are no AGI limits for the credit, but there are some circumstances that could apply. You can review Form 2441 in your return to determine how the credit is being calculated.

 

Did you receive any dependent care benefits from your employer? This will reduce the amount of the credit. Did you have a sufficient tax liability to utilize the full amount of the credit? The child and dependent care credit is nonrefundable. This means it cannot reduce your tax liability below zero. Did both spouses, if filing jointly, have earned income greater than the total childcare expenses? If not, the credit may be limited.

 

What is the Child and Dependent Care Credit?

 

Filing Tax Form 2441: Child and Dependent Care Expenses

 

The Ins and Outs of the Child and Dependent Care Credit

 

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